12x07 - Episode 7

[bunniefuu]

Narrator:
Tonight on "Shark t*nk,"

we could all use
some holiday cheer.

Hi, Sharks.
Hi, Sharks. Hi, Sharks.

Who's ready to ski
into a big old pile of money?

I've always dreamed
of that. [ Laughs ]

Let's make a deal and put
an end to poo-crastination.

Ba-bam!

It's been a really crazy Journey,
but here I am.

That's the
Christmas spirit I like.

Adam: Let's make a deal.

I do believe this
is a game changer,

but I don't want you
to shop it around.

Oh, Barbara!

Bah, humbug.

And I'm sitting out here
like an elf in the cold.

[ Christmasy version of
"Shark t*nk" theme plays ]

Narrator: First into
the t*nk is a way

to make a big statement
during the holidays.

♪♪

Hi, Sharks. Hi,
Sharks. Hi, Sharks.

I'm Amberly. I'm Jennifer.

And I'm Kristy.

We're three cousins from Houston

presenting our
Texas-sized ornament.

We're seeking $150,000

in exchange for


Do you have more Christmas
cheer than storage space?

Are you tired of spending
hours decking your halls

and your yard?

Do you love big holiday cheer

but hate seeing all
the melted snowmen,

the slayed Santas,
and the roadkill Rudolphs

flattened and deflated over
lawns the next morning?

Together: Well, we have the
perfect holiday solution for you.

Amberly: Introducing...

Holiball! Holiball! Holiball!

The inflatable ornament.

It's inflatable, deflatable,
and reusable.

The all-weather
material is UV-resistant.

You can easily hang them,
stake them, sit them,

and even float them.

And they're storage-friendly.

You can fit three
Holiballs in just a shoe box.

This is the only time you'll
want to have big Holiballs

but a tiny package.

And we have the perfect
product just for you.

You have some samples here,
so let's try them out and...

Have a ball! Have
a ball! have a ball!

So, I'm gonna take off my
top to show you how it deflates.

What I mean by that is
the top of my ornament.

Y'all dirty.

So, you pop the top,

[ Air hissing ] pull the plug.

Takes about 30 seconds
for it to fully deflate.

Jennifer: And then
to inflate your Holiball,

you can use any
household air compressor.

We recommend our
Fast Flow Inflator,

which will inflate your Holiball

in less than 30 seconds.

[ Whirring ]

[ Whirring stops ]

So,
you'll easily insert the nozzle.

Oop! And then put your pin in,

and then your topper.

Oops. My hands are shaky.

-That's it? -And voilà!

Happy Holiball.

So, which one of you
Holiballs thought this thing up?

[ Laughter ]

Amberly: I have
lots of crazy ideas,

but last summer, we knew

we wanted to do
something creative together.

I shared this idea of
the inflatable ornament,

and it sparked their interest,
as well.

We do all kinds of crazy
parties in our family.

We're always decorating.
We go over the top.

We've always wanted
the big commercial decor

you see in malls
and shopping centers,

but they cost
thousands of dollars,

they weigh hundreds of pounds,

and there's nowhere
to store them.

And so we started researching
to see if we could find

anything similar,
and we could not find anything.

In July last year,
we searched and sampled

and sourced all
types of materials,

and we finally
found this material

that not only achieved the
aesthetic that we wanted,

but also the durability.

So, in less than 120 days,

we were able to produce,
package,

and design our ornament,
ready to sell.

Wow.

Let's talk sales.

Since starting
November 1st of last year,

we're at $171,000 in sales.

Good for you!

What do you think
you'll do this year?

So,
we're projecting $650,000 in sales.

Whoa! Cuban: And what leads
you to project that, Jennifer?

And we will profit $300,000.
How do you base that projection?

So, last year, the only thing

that capped our sales
was lack of inventory.

We hustled the Christmas
markets last year.

We had no money for marketing.

In three days,
we sold $30,000 worth of Holiballs.

Yeah! Good job. We
completely sold out of two colors.

In January,
we did $115,000 in sales.

So after Christmas,
you did $115,000. Yes.

Give me a very basic number.

What does this cost to make,
and what do you sell it for?

Amberly: Sure. So,
they come in two sizes --


and 30-inch diameter.

Is this the large
or the small one?

-That's the small.
-That costs $10 to make.

And you sell it for what?

Retail $40 and $60.

-Whoa. -Wow.

What percentage of your
business is wholesale?

Sure. So, this year,


However,
COVID really put a damper in our plans,

so we had to really
do a digital pivot.

[ Clicks tongue ] Yes.

So we worked on our website,
our SEO optimization.

What's your biggest obstacle?

So,
our biggest obstacle really is inventory.

We want to scale
inventory to get prices down.

And in order to do that,
we would need your help.

We want to move into
branding and licensing,

but also to help us
streamline the production

and really distribution process.

For me,
it's the seasonality. That's so tough

having gone into this space

three times now
over the last 10 years.

But look, guys, I love it.

I think you guys
are very credible,

but it's just not a
journey I want to take.

And I would have to
slam such a royalty on this

that the ball would
deflate. [ Laughter ]

Amberly: Mr. Wonderful,
are you sure I'm sorry -- I'm out.

You don't want
balls in your portfolio?

I do. I have balls.

[ Laughter ]

-Thank you. -Thank you.

The valuation is pretty
high. It's $1.5 million.

Why do you feel
it's worth that much?

So, we're basing that on our
current and projected sales.

Amberly: The thing is,
there's nothing like it on the market,

and we feel like we've
proven that people want it

in the fact that we sold
out the first three days

that we had it on
the retail market.

But you're also at the
mercy of how other people

run their businesses
-- retailers putting it out

on the shelves
at the right time.

You know, you have a patent,
but somebody

will find ways around that,
unfortunately, right?

You're right. It
will be knocked off.

That's another reason
that we need you guys,

is to hit the ground running
before it gets knocked off.

Looking at product,
it's so visual and so much fun,

but I think you're way out
of line with your valuation.

You're projecting
$650,000 in sales next year,

and I'm sure that influenced
the way you priced your stock,

but you have to remember
that that's what you hope to do.

I believe you'll do it,
but it's not proven.

I'm gonna make you an offer
based on where I think it is.

So I'm gonna give you $150,000,

but I want 25%

so that I could be a full
Holiball right with you.

Thank you for that offer.

But I don't want you
to shop it around.

I'm not sure Lori has an offer,
but I'd like to b*at her out.

[ Laughs ]

So you have to answer me,

but you can't entertain another offer,
please.

Whoa! Oh, Barbara!

♪♪

Narrator: One Shark is out.

Amberly, Kristy, and Jennifer

have an offer on the
table from Barbara

for their giant inflatable
Christmas ornaments, Holiball,

but she won't wait for
them to hear other offers.

Corcoran: So you
have to answer me,

but you can't entertain another offer,
please.

You waited all that time to come here,
and you're not gonna --

she's not gonna let you
listen to anybody else.

Because I know I'm giving
you an equitable offer.

I know I can help you.

What is great about this product
that you're not utilizing now,

I suspect,
is it's built perfectly

for social media and promotion.

It's so visual. Let me
tell you what I think.

Everybody up here
has digital access.

That is,
if Barbara will let me tell you.

So,
Barb -- It's certainly up to you.

I don't mean to force an offer.

I just think I'm
the dream partner.

It's a fair deal.

O'Leary: That's the
Christmas spirit I like.

It's a perfect offer. John: Come on,
Barbara.

I wouldn't push it if I didn't
believe it. Bah, humbug.

Barbara,
we would love to partner with you,

but we'd also like to hear
our other opportunities

with the other sharks.
That's what I'm talking about.

Okay. Then you
don't want this offer?

So, I'm the only one who ever
licensed any Christmas products here.

A guy came on here with a company
called Hanukkah Tree Topper,

and I licensed that
out to Kurt Adler,

the largest company
in the space.

So my offer is, I'll give you --

Okay, I'm out.

Daymond,
how do you sleep at night?

How do you sleep at night?!

Yeah, how do you sleep at night?

He doesn't sleep at night.
You destroyed that deal.

Vampires don't sleep. [ Laughs ]

I'll give you $150,000 for 20%,

and I will take 5% less than
what I was gonna initially offer

because Barbara's
such a mean person.

[ Laughs ]

I'll tell you what
I was gonna say.

You're gonna let me speak --

I think it's only fair.

This is their moment,
their one moment on the carpet, right?

Wait a second -- do
I hit that Mark Cuban

could be interested
in Holiballs?

Let me just tell you
this -- I always wanted to

meet the women who had
the world by the balls, right?

So we'll do 25%...

$150,000 for 25%,
we're both your partners.

And you get both of us.

Whoa, Holiballs!

And you're $150,000 for 20%?

$150,000, 20%,

and I got the licenses ready.

[ Whispering ]

I'm wondering if I got
to get back into this deal.

No,
you don't want to get back in the deal.

I know! I'm wondering if I
should go in with Daymond.

No, don't go in!

Daymond,
should I go in with you?

Come on in.

Hey, ladies. Daymond
and I just went in together.

Oh, no!

So, you two in $150,000

for 20%? For 20. Yep.

And then you two are in for 25%.

And I'm sitting out here
like an elf in the cold.

Sure you don't want back in,
Mr. Wonderful?

[ Laughter ]

[ Whispering ]

♪♪

Okay. Okay.

Barbara and Mark,
you have a deal.

[ Cheering ]

Boo! Thank you so
much for your offers.

-Horrible decision! -Thank you.

Why did you pick
Mark and Barbara

over Daymond and Lori? For less?

There was no reason.
It was our gut feeling.

Good. Your gut is right on.
We're gonna make a lot of money.

Thanks, guys.

-Bye. -Congrats, guys.

Oh, my God, we got a deal!

Barbara was on board
from the beginning.

Yeah,
she believed in us right at first,

and that meant a lot,
as well, that she was willing

to put her neck out
there for the Holiballs

and she wanted to be a Holigirl.

What more could
you ask for? Yeah.

So,
we got a Holigirl and a Holiboy.

[ Laughter ]

Daymond,
they threw you under a bus.

This is what you look
like now. That's right, yeah.

[ Laughter ]

♪♪

Narrator: In season 7,
Evan Lutz made a deal with Robert Herjavec

for his produce-delivery service
with a mission, Hungry Harvest.

For every bag we deliver
to one of our customers,

we donate a healthy
meal to someone in need.

Narrator: Let's see
what he's up to now.

Food insecurity
means you don't know

where your next
meal is coming from

or you don't have access to
healthy fruits and vegetables.

Over 35 million households
are food-insecure.

At the same time,
over 20 billion pounds of produce

go to waste every single
year in the United States.

In the five years
since "Shark t*nk,"

Hungry Harvest has
delivered over 2 million boxes

to hundreds of
thousands of households

across the United States.

Most of our customers subscribe
because they love the mission.

We've now done
$50 million in sales.

Lutz: 25 million
pounds of produce

that would have
otherwise gone to waste

are now in the hands
of consumers. Love that.

Herjavec: The reason I
invested in Hungry Harvest

was the social mission.

We're helping people
that need a helping hand,

and if there's anything that
we've seen during COVID,

there's a lot of
people who need help.

I would never in
my wildest dreams

think I would be
making decisions

that had people's
lives at stake.

Lutz: Fighting food insecurity has
always been part of our mission,

and now, with COVID-19,
it's never been more important,

and that's why we launched
the Emergency Box Program.

So far, we've been able to
serve 65,000 boxes of produce

to help needy families
during this crisis.

I think sometimes
you just need hope.

You just need somebody else
to tell you it's gonna be okay,

and I kind of feel like

the country is in the
same place right now.

Herjavec: This is
a great business.

Not only does it help the community,
saves food waste,

but it's making a profit.

It is great to do good,
make money,

and do more good.

Lutz: Ever since I was a kid,

I've dreamed of becoming
a social entrepreneur

that helped people and
gave back to the community.

The last five years have
been nothing short of incredible.

Every single day,
I have to pinch myself

that I am living in reality,
that I'm really doing this,

that Hungry Harvest
has helped a lot of people

and become wildly successful,
and I could not be more grateful

for the platform that
"Shark t*nk" has provided.

♪♪

♪♪

Narrator: Next into
the t*nk is a perfect gift

for those who like to linger.

♪♪

Hi,
Sharks. My name is Katie Stephey.

And I --

[ Sighs ]

I'm sorry.

My husband was
supposed to be here by now.

A while ago, he waltzed into the bathroom,
phone in hand,

and I haven't seen him since.

He's what I call
a poo-crastinator.

In other words,
someone who wastes time in the bathroom.

Adam,
are you still in the bathroom?

Adam: I'm just doing the
paperwork! Almost done!

Okay, it's been 40 minutes.

[ Toilet flushes ] [ Laughs ]



That would explain
why I can't feel my legs.

[ Laughter ]

Hey, Sharks. Sorry I'm late.

My name is Adam Stephey.

And I'm Katie Stephey.

And we are from Normal,
Illinois.

We are seeking $200,000
in exchange for 10% equity

in our company, Katamco.

And now introducing

our most successful
product line to date --

The Toilet Timer!

-Oh, no! -[ Laughs ]

Oh, hell no. Ohhhh.

The Toilet Timer
is the perfect way

to tell someone to
poop or get off the pot.

Adam: This is a sand timer

with a unique
mechanism that I invented.

It gives you about five
minutes to do your business

so you don't miss
anything important --

like pitching on "Shark t*nk."

Remember, Sharks,
the Toilet Timer

will take him from
infinite scroll...

To the toilet paper roll!

[ Laughter ]

Let's make a deal and put
an end to poo-crastination.

[ Laughter ]

Cuban: Oh, my goodness.

You can't be serious.

[ Laughter ]

That's right -- I
can't be serious.

It's very rare.

Let me just stand up
for all men in America

and say that is our only
time where we get privacy.

Let me just tell
you a fact of toiletry.

Katie: Yes. If your
legs don't fall asleep,

you're not doing it right.

[ Laughter ]

Well,
it can be a product that guys don't want

but that a woman looks at and says,
"He needs this."

It's just supposed to be a gag gift,
though, right?

Greiner: It is a gag.
It's primarily a gag gift,

but there's a
practical side to this.

And what would that be?
What's the practical side?

That being on
the toilet too long

can be bad for your
gut and your butt health.

I think this would be a great
time to cue up Dr. Rieders.

Hi, Sharks.

As a gastroenterologist,

I tell my patients not
to stay on the toilet

for more than three
to five minutes.

This will prevent fissures
and hemorrhoidal bleeding.

The Toilet Timer is
certainly entertaining,

but it's a medical fact

that lingering in the loo
is bad for your health.

[ Laughter ]

Thank you, Sharks,
and good luck, Adam.

Corcoran: Oh,
my gosh. [ Laughs ]

I'm trying to be
pragmatic about it,

and I give everybody
an equal opportunity.

Ooh. However,
I'm a little skeptical here.

Uh-huh. $200,000 for 10%.

We don't even know what it sells for yet,
Kevin.

We don't know what
it costs them to make.

Well,
I'm excited because a $2 million valuation

means there's a lot of
poo-poo going on here.

Mm-hmm. We're totally
gonna get the numbers.

There's some great
numbers. Get us excited.

Christmas 2019,

quarter million
dollars in sales.

$250,000.

And what does it
cost you to make this?

Just under $3 landed.

And you sell it for what?

$14.99.

You've got to be kidding.

I know.

People are crazy.

But where did you sell it?

It's primarily Amazon.

What I want to tell
you about the product

is it lends itself to
licensing very easily.

So if you'd like to remove
your black hankies,

be our guest.

[ Laughs ]

Oh! Oh.

Kevin,
how do you like your new look?

I know I'm getting a royalty.

[ Laughter ]

Kevin,
I've seen your face on a potato,

so I didn't think this
was a big stretch.

Yeah, listen,
I used to pooh-pooh

these kind of tchotchke ideas
until I got into Potato Parcel.

Now I'm not laughing anymore

'cause I get a big
check every month.

Let's stay focused
on the numbers,

because you're
asking for $200,000.

How much is this going to sell this year,
in your estimation?

Okay. You said quarter
of a million last year.

Yeah. It was $294,000
last year altogether.

That's huge. Quarter
million since December.

How do we know
it's gonna sell again?

Well, how are you promoting it,
right?

Or are people just
finding it on Amazon?

What has happened over
the past two Christmases

is Amazon's algorithms
have picked up

that people like
this and they buy it,

so last Christmas,
I didn't spend a dime on advertising.

Good for you. Good for you.

I have never -- Thanks, Mark.

What are you on
track to do this year?

If I walk out of here
with no deal today,

then I'll do a million
dollars this year

because that's all the
product I can afford to buy.

You'll do $1 million
in this crap this year?

Adam: Yeah, yeah. Why would
it go from $250,000 one year

to a million the next
year without publicity?

That's such a great question.

Because this year,
we've already done $318,000 of this SKU.

John: $318,000? Katie: Yes.

And a quarter million of that
was this Father's Day, so --

How is this possible?
What planet are we on?!

We're on Planet Poop, man.

If I can walk away
with a deal today,

I believe that I can do $3
million in sales this year.

I thought you said
$1 million earlier.

That's right. My bank
is not scaling with me.

He can do $1 million this year
with or without us, he's saying.

That's right,
and then $3 million

if I can get some
help getting inventory.

As we've looked at the humps that
have happened over the past seasons,

we've got a big
Christmas on our way,

and I want to be ready for it.

I have never been ready
for a holiday season,

and I've sold out each season.

'Cause you don't have enough
inventory. That's the problem?

You need the $200,000
to build more inventory?

Well, no,
I need $200,000 for some other stuff,

and I need some more
money for inventory.

What other stuff?
John: What other stuff?

Well, what I'd like to do is,

with $70,000 of the investment,

I can put that towards turning
our production line in China

into a higher-volume
production facility.

But you have great
margins already.

Why would it be a priority for
you to even invest that money?

That doesn't make
sense to my ears.

It doesn't seem to
me like there would be

anything that you
should have to pay for

or supply to a factory,
if you don't own the factory,

that you would put any
money into whatsoever.

The factory should
improve their systems free

and ramp up to accommodate you

and make inventory. Absolutely.

You see why I'm here?
Is to learn from you guys.

Katie: Yes, exactly.

Well,
don't fall down that rabbit hole.

Do not give any
factory any money.

Just give them
more purchase orders

and tell them that
they should figure out

how to ramp up the speed
of the making of the product.

That's good advice. I
think you guys are great.

I think a lot of
people will buy it,

but it's just not
the kind of thing

where I feel like I could
come in and give you anything

that's really super beneficial
to blow up your business.

So for those reasons, I'm out.

Adam, I respect sales,
and you have them.

The trouble with this deal,
though,

is you're asking for $200,000.

Alright? This is a
gag company. I get it.

But $200,000's too much.

Okay. Way too much for this.

I'm out.

Okay. Thanks, Kevin.

You're thinking
this is a business.

It ain't. It's a gimmick,
alright?

And you can make a
certain amount of sales,

and it's gonna burn out.

So for that reason, I'm out.

How much did you start the company,
this product with?

Well, my whole company was $300.

And you're gonna do a
million dollars this year?

Yeah. For sure. At least.

I think that's extremely impressive,
right?

Yeah. But on the other side,

I have a personal matter
when it comes to this,

because in the --

I think you're taking away
the only time that men have.

It's just something I don't resonate with,
so I'm out.

Thank you, Daymond. Yeah.

So,
it can be a thr*at towards men,

but people keep buying these.

Mark, do you want to add a
Toilet Timer to your portfolio?

I've always dreamed of that.

Yeah, what I like about this is
there's always gonna be Father's Day.

There's always gonna be a need for gags,
right?

So I like it.

Obviously,
you need money for inventory,

so I understand why
you're here for that.

So I'll make you an
offer. Corcoran: Wow.

I'll offer you $200,000
that you asked for for 25%.



I think we should just do that.

Hey, Mark,
let's make a deal and let's do it, okay?

Corcoran: Good. Let's do it,
baby!

What a surprise
ending. This is awesome.

[ Grunts ] Yes!

Appreciate it. Thank
you guys all so much,

and thank you --

What you guys do for
American entrepreneurialism,

it's beautiful.

Thank you. Thank you.

-Thank you,
Mark. -Bye. Congrats.

Adam: We didn't want to
look a gift horse in the mouth.

Mark was our only offer,

and there were some things
we could have countered with,

but at that point,
I didn't think it made sense.

We're okay with 25%.

We think that we can do
great business with this product.

♪♪

Narrator: Next up is an
innovative way to shred the slopes.

♪♪

Wow.

What's up, Sharks?

Who's ready to ski into
a big old pile of money?

My name's Kevin Greco,

and I'm the chief
enthusiast officer for ODR.

I've been on
skis my entire life,

skied every inch of
every mountain I could

in my childhood home of Alaska.

It was a snowy paradise
and an amazing experience,

except for the equipment.

Everything about traditional
equipment is inconvenient.

It's bulky, it's hard to learn,
and it's dangerous.

ODR skis are sleek
and hassle-free,

easy to transport,
and a total thrill.

Check it out.

With ODR skis,

you get the rush of wind
blowing through your hair

without the risk of
out-of-control riding

or runaway speed,

and without bindings
or leverage points,

the common injuries that you
see in skiing and in snowboarding

are virtually eliminated.

What you're witnessing, Sharks,
is the inception of a sport

and a brand that is disrupting
the global ski industry.

So, we're seeking $350,000
for a 10% stake in ODR.

So, who's ready to join me?

'Cause it's all
downhill from here.

[ Laughs ] Greiner:
That's very cool.

Very cool. Are there other --

anything else
out there like this?

So,
we have started to get some competition,

but what's unique about us

is that we're a fully
integrated system.

So despite looking
like ski boots,

they're actually flexible,
like a tennis shoe.

And then, lastly,
this is really our bread and butter.

We're the only
one in the industry

using a system called
liquid steel injection molding,

and what this gives the
rider is great edge control

on harder-packed
groomed snow conditions.

Kevin,
how long have you been doing this?

I've been doing this since 2017.

You started
selling in 2017 or...

In 2017, the company had
been around already for one year,

so they started in 2016.

And I'm sorry -- I think
I missed something.

You said somebody else
was doing this initially?

Yes, so, I joined the company
in 2017 as a distributor,

and little did I know
that in a few short years,

I'd end up owning
the global brand.

So,
obviously there was a founder.

Tell us about that journey.

Yes. I've always
wanted to be a disrupter.

I've always wanted to
work on technologies

that are creating
new opportunities.

So I saw a video
for this product,

and I was like,
"Oh, my goodness.

I have to figure out
how to be a part of this."

So I put in $100,000 to
own the distribution rights

in North America

and then just built the company
and got so powerful here

and so big with the sales
that were being generated.

So, how did you get all
the equity into your name?

Yes. Sales,
Kevin. That's how I got it.

I got the equity because
I was a sales monster.

I was eating market share.

Say that again,
'cause I love to hear it.

[ Laughs ] "I am
a sales monster."

...a sales monster!

I built myself so big that I
overwhelmed their supply chain,

and they had to make a choice.

The choice was I
take over the company

and they come with me on
a ride to the next winter sport

or I end up as a competitor.

Whoa! Corcoran: Hardball!

Ba-bam!

What percentage do you
own of the company now?

I own the entire
company worldwide now.

What did you pay
for the company?

So, my invested capital
was originally $100,000.

I ended up putting
in another $50,000,

and then I took on investment

to clear the buyout
of the entire company,

and that total transaction cost
another $200,000 on top of that.

Was this company originally
an international company?

Yes, ma'am.

Can you tell us where
that was? Norway.

They were operating around
the world in over 20 countries.

And the problem with the model is,
I believed from day 1,

the key to the future
for winter sports

was a direct-to-consumer model,

a product that was easier to size,
easier to fit,

and so I focused on digital.

I'm a skier, okay? Yes.

What makes this any different

than the shorty that I have
already with a binding on it?

Sure.

And the challenge for shorties,
they're very unstable.

It's not easy to do

'cause you don't have a
lot of base on the snow.

So, we have riders that have
gone over 60 miles an hour

on the product you
see in front of you.

Just 'cause you can
doesn't mean you should.

You can achieve great speed.

One thing that's been very
near and dear to my heart is,

we haven't had a
serious reported injury

in the growth that we've had,

which has been
really tremendous.

It comes down to the
fact that when you fall,

you fall naturally.

There's nothing binding you up.

Like,
I've always heard it's the bindings. Yes.

I decided not to become a
skier for that same reason.

However,
I did become a pretty good snowboarder.

I'm called Chocolate
Powder on the mountain.

Can you go in deep
powder with these?

So, they can work in fresh snow,
a few inches of fresh snow.

How can they be in deep
snow? There's no base.

That would be impossible, Kevin.

Not deep powder. Not,
like, off trail.

And not that that's
that important,

'cause that's probably about,
what, 3% of riders?

I mean,
the rest are on regular slopes. Correct.

What is the retail price on
this and your cost to make it?

So, it's $100,
our cost to make it,

and then we sell it for
an average ticket of $350.

And what is a typical ski boot?
Roughly $350 to $400, right?

Yes, ma'am,
and for an entire ski set,

it can be considerably
more than that.

What are your sales?



I had yet to join the company.


I got involved halfway through the season.

We did $660,000.

And you're crediting
yourself for that?

[ Chuckles ] Of course.

He's a sales monster.



Okay, what's the next year?

We're on track, conservatively,
to $1.5 million this season.

Are you gonna make any money
off the $1.5 million this year?

This year, we're going to be
approaching our profitability,

and that's because of the
direct-to-consumer digital pivot.

You've never had
a profit to date?

We have, actually. In 2018,
we did $120,000.

The restriction has been
wholesale to distributors

around the world with
opportunity everywhere

versus me -- digital,
digital, digital, digital.

John: Kev, I got one last
question -- I just want to make sure

that I'm understanding
the story. Sure.

A poor little guy in Norway
comes up with this great idea,

and then you come in,
and then you thr*aten

to take over the company
or become a competitor.

Yes.

If I become a partner with you,

would you s*ab me in
the back the same way?

No. Not at all.

So, Daymond,
this is what happened.

I built just a really
tight-knit family

of customers here in the US.

I was getting to meet them,
see them,

see how it was
affecting their life.

I was getting letters,
and they're saying, like,

"I got to see my kid out there."

"I had a bad injury. Now I get
to be with him on the slopes."

And so it was super powerful.

And what happened was,
when my supply chain

got just restricted,
they started to manipulate me.

They started say,
"If you want it now,

it's gonna be this price."

And I'd built this really amazing
following and family here.

And so finally,
we reached just this breaking point,

and that's when it came up,
Daymond,

where I said,
"I cannot abandon the people

that I've put my blood,
sweat, and tears into

and my money into.

We're either gonna
move forward together

or, like,
I'm gonna do this on my own."

Alright, Kevin,
here's my decision.

I think this product
is impressive.

I know snowboarding.

I don't know
anything about skiing.

I think there's two other
people up here for sure

that are more
skilled in that area,

but I would be doing
you an injustice,

not bringing more
knowledge to this,

so for that reason, I'm out.

Thank you, Daymond.

I love you.

Thank you,
Lori. You are amazing.

Any other product under the sun,
I'd be so in with you.

Problem is, I'm not a skier.

And so, unfortunately,
for that reason, I'm out.

Okay.

Yeah, Kevin,
you're the perfect entrepreneur,

and I've never said that

the entire history of
being on "Shark t*nk."

And I mean that seriously. Thank you,
Mark.

You love to sell your product

because you know
how amazing it is,

but you understand
it's not about convincing.

It's about helping.

The problem is,
I've never skied in my life.

So while I am just wowed by you,

for those reasons, I'm out.

I'm pretty familiar
with the ski industry,

and frankly,
$1.5 million in sales for this year

is a really small
amount in the context

of the ski equipment industry,
which is in the billions.

It's so intriguing,
but I can't get there as an investor.

I'm sorry, Kev, but I'm out.

Barbara's still in. What do you want to do,
Barb?

I'm sitting here on the fence,

and I keep going on
one side of the fence

and getting, "Oh,
I'm going to the other side of the fence."

I do believe this
is a game changer,

and I really believe in
your vision for the sport.

I also like your
price structure.

You basically
get into this sport

for a third of what it would
cost you to get the skis,

the boots,
the bindings, the poles.

Yes. To the other side,

here's what's bothering me.

When I sold my business,
at the 11th hour,

one of the most important
people in my business

held me up for
a million dollars.

She said,
"You either pay me a million

or I'm going to your rival."

Now, what do you think happened?

I gave her the
million immediately.

She would have spoiled the deal.

The deal would have been off.

The idea that you held a
g*n to your employer's head --

That's not what happened,
Barbara. Yes.

Cuban: Yeah, I don't see that at
all. It isn't what happened, Barbara.

Yes,
I read that. I read it that way.

I begged them for over a year,
and they wouldn't budge --

back and forth
and back and forth

and more constricted
and more constricted.

You are a phenomenal salesman.

You'd be the top
dog in any industry.

Thank you.

But I have to say to you, um...

Unh-unh. I wouldn't trust you.

I think I'd be worried a
little bit about my own back.

It's as simple as that,
so I'm out.

Good luck,
Kevin. Thank you so much. Appreciate it.

Good luck, Kevin. Alright.

Barbara's, I'm sure,
been in many situations

like the one she described,

and those situations
can really scar you.

All of the Sharks, I believe,

are gonna regret not
making a deal today,

as they watch this
company grow into the future

and do amazing things.

It was his relationships
with the customers,

not the people in Norway.

No, but I'm gonna tell you,
that's not the tone.

The tone here was "I took over the
company. I did it." Yes. That's how I felt.

And I think there was some bravado.
That's how I felt during the opening of it.

♪♪

♪♪

Narrator: Next into
the t*nk is a product

that solves a
danger for children

that many are unaware of.

♪♪

Hi. I'm Dahlia Rizk from Windham,
New Hampshire,

and I'm here seeking $100,000

in exchange for


Buckle Me Baby Coats.

Before we get started,

I wanted to ask you
guys -- how many of you

have been personally
victimized by a toddler?

Yeah. Kids are exhausting,

and getting them
into the car seat safely

is a battle that gets even
worse in the wintertime.

You see, most parents still
don't know that both the NHTSA

and the American
Academy of Pediatrics

recommend taking puffy
coats off in the car seat.

The puffiness of the coat

compresses
underneath the harness,

and experts have found

that the teeniest amount
of extra forward movement

creates critical brain,
neck, and spine injuries,

or worse,
they can be thrown from the car seat.

Like all parents,

I totally wanted my daughter
to be strapped in safely.

But my reality was,
she was freaking out.

I thought to myself,
"What are my options?"

I could take her
out of her coat,

but it is freezing outside.

I could leave the coat on,
but it's dangerous.

I felt like I had to choose

between safety, warmth,
and convenience,

but I wanted all three.

I thought to myself,
"Shouldn't there be an easier, safer way?"

So I invented one.

Buckle Me Baby
Coats' patented design

opens along the shoulder
seams and the side,

allowing parents to put
the coats on at home,

put their child in the car
seat the way they normally do,

pulling the one hand through,

then pulling through
the other hand.

And the difference in the
coat is in this front panel.

When you pull it out of the way,

it allows the harness
to sit directly on

the chest and
shoulders... Clever.

...with absolutely no
puffy fabric in the way.

The back of the coat is
thinner than the front, as well.

This allows the
harness to be pulled

to the same exact
tightness as no coat at all.

I'm sure you've had your
share of battles with your kids.

Unsafe coats in the car seat
should never be one of them.

So, Sharks, who will join me
in making kids' winter coats

exactly what they should be --

easy and convenient for parents
and safe and warm for kids?

Dahlia,
how many people know this is a problem?

So, every year,
the news will talk about it

almost incessantly
starting in September.

They recommend that
parents take coats off.

A recent automobile study found

that about 65% of parents
continue to leave coats on,

whether it's because
they don't know

or because it's just
too inconvenient.

They really don't
talk about that.

'Cause until you walked
into the Shark t*nk,

I've never heard
of this problem.

I never have, either.

John: When was that "Aha" moment

that you realized that
this was needed right now?

So, I was one of those parents

who just really wanted to do
everything right by my daughter,

and I was paranoid
about her car seat,

and car seats are
hard to put in correctly,

and it's easier now than it was
when my daughter was little.

She's now 21.

She was about 5
when I thought of this.

So you've been
working on this 16 years?

No. I had to put
the brakes on it.

Why did it take 16 years?

So,
when I first thought of the coats,

I called around to
every coat manufacturer

that you could think of,
and none of them thought

that coats and car seats had
anything to do with one another.

They were simply just
not interested in the idea.

And Facebook wasn't a thing,

so I had no way to
reach parents directly.

Exactly, yeah.

And I was at the point where
I was starting my master's,

and I'm like,
"I can either do this or do that,"

and the master's seemed
like more of a sure thing.

And then as my kids grew
older and my marriage ended,

I started thinking,
"What are the things

I'm passionate about that
I've always wanted to do?"

And around that same time,

I was walking
through the parking lot,

and I saw this mother walking,

and she had her
daughter in this blanket.

The blanket was
dragging through the slush,

and she looked
miserable and defeated --

the way I felt when
I first thought of it,

and I'm like,
"I can't believe that's still not a thing.

I'm going to make a prototype."

I threw it on
Facebook. It exploded.

And then I just
scrambled to learn the rest,

and it's been a really crazy journey,
but here I am.

Welcome to entrepreneur life.

I know. It's been really fun.

So,
what does a coat typically cost a parent,

and what does it
cost you to make?

They cost me between
$14 to $15 landed,

and I sell them
from $59.99 to $129.

Where are you selling them,
and how much have you sold?

I have sold about
$700,000 worth of coats

in the past three
years. Whoa! Wow!

$700,000? Cuban:
Over what period of time?

Over the past three years,

and $500,000 was just
in this past year alone.

I've done all of this from
the ground up all by myself.

I've had no investors.
I've had no help.

I've been trying to put as
much money into inventory

instead of into hiring people.

Where do you sell them?


my website and Amazon,

and then the other 25%,
I sell to a big box store.

What do you envision your sales
are going to be this current year?

My sales this year are
a little bit conservative.

My growth has been
about 250% to 350%,

but around the time when I was
about to place the order for this year

was when COVID started to
become more recognizable,

and I thought to myself --
if I order what I had planned

to order, which was about
$1.3 million in inventory...

Wow... and people are stuck
at home and nobody's traveling...

I'm by myself -- I
don't have any backers,

I don't have investors --
and this will put me under.

So what did you do? You put the
brakes on because of COVID-19?

I didn't put the brakes on.

I just purchased
more conservatively.

And long-term,
what do you envision for your business?

If I find a coat company
that is as passionate

about car seat coats and
keeping the safety aspect --

it's not just a gimmick --
Then you can license it to them.

...I'm open to
selling the company

and letting it move on and
really reach more parents.

That's what I'd like to do.

And do you have a patent?

I have a utility patent,

but not only is
it a utility patent,

but it's a foundational patent,
meaning that it is

the first patent for a coat
designed for the car seat,

and I also have trademarks.

Greiner: That's great.

As an investor, if I ask you
"How do I get my $100,000 back,"

do I have to wait till
you sell the company?

Well, there are several
ways that I could do it, right?

So I'd really like to start

looking into
distribution overseas.

If you're interested in helping
with distribution overseas,

we could do some sort of
percentage on those sales.

Oh!

Did I hear "royalty"?

Maybe. [ Laughs ] Okay.

So, how much are you spending
on advertising per month?

I spend about $8,000 to
$10,000 on advertising,

and it costs me,
depending on the platform,

between $15 to $18 per customer.

So it's costing you
$30 worst case.

Yeah. So your worst
case is 50% margins,

and your best case
is 100% margins. Yep.

So you're putting half a million
dollars in the bottom line. Yes.

Yeah,
you're investing in assets. Yes. Yes.

Oh, thank you. Thank you.

You remind me so much of
myself and the road that I went.

Oh, that's quite the compliment.

I knew nothing about how to
create or market my product.

I had no business background,
but I just figured it out.

I often have thought
back and ask myself --

if I had somebody
buy out my company

or if I had somebody
give me a loan,

what would I have done?

And I don't think I'd
be where I am today,

because I think the fact
that I had to play every role

and learn every facet of
running and driving a business

made me smarter and better

and able to get to
where I am today.

But I don't think that
you need a partner.

I think you're doing
great on your own.

And for that reason, I'm out.

Thank you. I
appreciate your time.

Lori's right. You don't need
somebody to come in here.

Can I tell you why I do?

Sure. Yes, we'd like to hear.

Okay. I'm here for a strategic partner,
right?

And you guys can
open doors faster.

To your point,
there's still a lot of families

that don't know,
and among those that do know --

That's not retail you're talking about.
But that's marketing. That's marketing.

That's marketing, and I'm working
-- Cuban: My point is, Dahlia,

you can hire somebody
for that that's really good.

Look,
all of us can help promote,

but honestly,
this isn't the right area for me.

So for those reasons,
I'm out, but congratulations.

Thank you, Mark. I mean,
what you've accomplished is stellar.

Thank you very much.

Dahlia,
I'm gonna make you an offer of $100,000,

but I want 20%.

And I'm gonna tell
you why you need me.

You're gonna use me
to build your business

so that you reach your
goal of selling your business,

which you clearly stated here,
and I know how to do that.

I think you should
listen to all the offers.

♪♪

♪♪

Narrator: Two Sharks are out.

Dahlia has one offer
on the table from Barbara

for her car seat-safe coat company,
Buckle Me Baby Coats.

Dahlia,
I'm gonna make you an offer of $100,000,

but I want 20%.

I think you should
listen to all the offers.

Dahlia,
I've got a fantastic offer for you.

I love your business,
but I'm not greedy.

I don't need that much equity,
so here's what I'm gonna do.

Your margins are fantastic.
You can afford a royalty.

So I'm gonna ask for $2 a unit

until I recoup $300,000.

And I want 2.5% equity

just because I think one day,
you will sell the company,

and I'd like to
participate in the upside

and be kind of a
partner with you.

But it's an
alternate to Barbara.

She's very greedy. You know,


I'm not the least bit -- [
Laughs ] I find that disgusting.

But never mind.

You know,
the best way to get a buy

is to get a license in between,

and I know the three
people in the space

that kind of handle
all the kids' coats.

I think that the best thing
would be to do a fusion.

I'll give you $100,000 for


and it would be 30%
of all licenses I bring in.

So it doesn't disrupt
your core business.

Then all the other brands

that are making the
kids' coats for Peppa Pig,

to license it out to them,

so then you get to
cover both bases.

You get to push out a lot of
stuff on somebody else's dollar

and then market
your core business

and make the money
at the same time.

Dahlia,
I share one thing in common with you,

and it's not a
bad place to start.

I have a common goal with you.

I invested in an apparel company,
the Comfy,

and I already, in three years,
have built their business

to $250 million in sales.

I could do that
for your business,

and I'm your perfect partner,

But I'll again restate my offer.

I want to give you
$100,000 for a straight 20%.

Why give up so much?

Would you be willing to do 15%?

No. No?

Would you?

♪♪

Keep the 30% as
it is but do 15%?

It's the same thing I'm
saying that Barbara's saying.

The whole purpose
of the licenses

is to get it out there

so somebody says, "Well,
we have to acquire it."

Yes.

So, you're coming down to 15%,
Daymond?

She's asking me. I don't know
if I'm coming down to it yet.

You have to make a decision.

I have to make a decision.

You really want to give
up 20% of your company?

♪♪

Daymond, I'll take your offer.

Cuban: Whoo! There you go.

Congrats. Wow!

Alright,
that's it. You're done, guys.

The people that I'm
talking about working with,

I've been working with them for 25 years,
right?

Yeah. So this is
where I started.

You're gonna make millions
of dollars on this, literally.

You're gonna make
millions of dollars less 20%.

Sorry. [ Laughs ]

Less 15%.

Oh, you're 15%? No, I'm 20%.

Oh,
I thought you agreed. Oh! Whoa!

I thought you agreed. I never
said that I would budge on that.

That is true. You
did not say that.

♪♪

Dahlia, what is the deal?



and it's 30% on the licensing.

Correct. Okay.

Mazel tov! Alright.

Now we have a deal!

Thank you. Thank you.
High fives.

Thank you so much.
Nicely done, really.

Thank you. Thank you.
Cuban: Well done.

I am so excited.

It went better than I thought
it could possibly go,

and I got the Shark
I was hoping for,

and I am super excited
to work with Daymond

to get so many coats into
the hands of so many families.

♪♪

♪♪